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Microsoft Nintendo acquisition hopes revealed by leaked Xbox exec email
(www.rockpapershotgun.com)
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I think they cared about it, saw the numbers, and realised the case can't be made because of the current way market is setup. CMA initially wasn't convinced but with correct calculations it got resolved. FTC actually didn't make a big point over cloud but that this could destroy PlayStation, which also wasn't justifiable with data. EU held similar opinions but felt it also is pro competitive given the number of IPs Sony holds.
But after ABK, I don't think that case can be made anymore. With ABK the number of IPs and content becomes more competitive with PS and Nintendo, and they all kept saying this is a vertical merger, Nintendo or Sony wouldn't, and thus wouldn't be allowed.